CONTRACT AWARDED TO CONSTRUCTORA URBANA S.A.

PANAMA CITY, Panama, July 19, 2007 – The Panama Canal Authority (ACP) took one step closer to breaking ground for the expansion of the Panama Canal Tuesday, when it officially awarded the first expansion construction project contract to Constructora Urbana S.A. (CUSA).

The selection process began May 7, when the ACP released its request for proposals to begin the first of five dry excavation projects to create the new Pacific Locks access channel. This new channel will link a new, third set of locks on the Pacific end of the Canal with the existing Gaillard Cut (the narrowest stretch in the Panama Canal). This project represents approximately 16 percent of the total excavation for the new Pacific Locks access channel.

At a special ceremony on Friday, July 6, the ACP reviewed the bid submissions for the first dry excavation of the new Pacific Locks access channel. The chart below shows the companies that submitted bids and their corresponding bid price. The ACP selected the lowest priced proposal that met all of the project’s requirements.

COMPANY BUDGET
1.   CONSORCIO EPSA MASERING MURCIA
(Brazil, Colombia)		 $55,224,233.40
2.   JAY CASHMAN, INC.
(United States)		 $89,968,160.00

 
3.   CONSORCIO CORESA
(Panama, Colombia)		 $48,204,942.14

 
4.   INTERNATIONAL UNDERGROUND CORP.
(Panama)		 $47,629,959.40
5.   CONSORCIO CONDOR PROIMPETROL PANAMÁ
(Colombia, Panama)		 $79,960,263.11

 
6.   ASTALDI-GHELLA SPA
(Italy)		 $61,930,269.41

 
7.   CORPORACIÓN MS INTERNACIONAL – MECO SANTA FE
(Mexico, Panama)		 $43,516,258.78

 
8.   CONSORCIO GRUPICA
(Panama, Mexico)		 $73,132,858.57

 
9.   CONSORCIO CILSA PANAMÁ-MINERA MARÍA
(Panama, Mexico)		 $44,459,871.73

 
10. CONSTRUCTORA URBANA S.A.
(Panama)		 $41, 094,000.00

 

(Note: All prices listed in U.S. dollars.)

“This is an exciting day for the ACP, as we award the first expansion construction contract. It’s a significant step forward in the creation of the new lane,” said Executive Vice President of Engineering and Program Administration Jorge L. Quijano. “We look forward to breaking ground very soon.”

The scope of work for the first dry excavation will include the removal of non-classified material, the disposal of excavated material and the construction of new gravel roads and ditches. Site work could begin as early as two weeks after the ACP gives CUSA the order to proceed.

Expansion will build a new lane of traffic along the Panama Canal through the construction of a new set of locks, which will double tonnage capacity and allow the transit of much longer, wider ships.

About the Panama Canal Authority (ACP)
The ACP is the autonomous agency of the government of Panama in charge of managing, operating and maintaining the Panama Canal. The operation of the ACP is based on its organic law and the regulations approved by its Board of Directors. For more information, please refer to the ACP’s Web site: http://www.pancanal.com/. For Panama Canal video, please visit www.thenewsmarket.com/panamacanal.com.